Hong Kong Stock Concept Tracking | Large Inflows into Gold ETFs in Q1 Boost Global Investment Demand Overnight Gold Prices Rise Across the Board (with Concept Stocks)

Zhitong
2025.05.06 01:04
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In the first quarter, global gold ETF demand surged, driving up gold prices, with spot gold reaching USD 3,337.66 per ounce. The total global gold demand reached 1,206 tons, a year-on-year increase of 1%. Gold ETF demand in the Chinese market hit a record high, with inflows of approximately RMB 16.7 billion. The total assets under management and total holdings of gold ETFs both broke historical records, reaching RMB 101 billion and 138 tons, respectively. In the future, gold prices may rise above USD 3,700 after the Federal Reserve cuts interest rates

On Monday, at the end of trading in New York, spot gold rose by 2.84%, reporting at $3,332.56 per ounce, with fluctuations throughout the day. By 03:40 Beijing time, it had risen to $3,337.66, approaching $3,400 and the historical high of $3,500.10 set on April 22. Spot gold touched $3,330 per ounce, with a daily increase of 2.75%.

According to the Zhitong Finance APP, the World Gold Council recently released the "Global Gold Demand Trends Report" for the first quarter of 2025, showing that global gold demand reached 1,206 tons in the first quarter, a year-on-year increase of 1%.

Among them, the recovery in gold ETF demand drove the total gold investment demand in the first quarter to more than double, reaching 552 tons, a year-on-year increase of 170%, marking the highest quarterly level since the first quarter of 2022.

From the perspective of the Chinese market, the demand for gold ETFs in China surged simultaneously, with an inflow of approximately 16.7 billion yuan in the first quarter, setting a historical record.

The surge in gold prices and unprecedented inflows have pushed the total assets under management and total holdings of gold ETFs to break historical records, reaching 101 billion yuan and 138 tons, respectively.

Additionally, the total demand for gold bars and coins increased by 3% year-on-year to 325 tons, marking the second-highest quarterly demand for gold bars and coins in history.

China Galaxy Securities stated that a breakthrough in gold prices may require waiting for the Federal Reserve to cut interest rates or a surge in physical gold demand. Future observations are needed regarding the U.S. economic situation, whether it is stagflation or recession. If stagflation occurs and the Federal Reserve does not cut rates, gold is likely to show a fluctuating upward trend. If a recession occurs, gold will follow other commodities in a correction until the Federal Reserve starts cutting rates. The fluctuation range for gold has been systematically raised to between $3,150 and $3,550, and after the Federal Reserve cuts rates, gold is expected to rise above $3,700. Additionally, strong demand for physical gold may lead to another upward movement in gold prices in the second half of the year.

Hong Kong stocks related to gold and precious metals:

Zijin Mining (02899), Shandong Gold (01787), Zhaojin Mining (01818), Lingbao Gold (03330), China Gold International (02099), WanGuo Gold Group (03939), LaoPu Gold (06181), Tongguan Gold (00340), Chifeng Gold (06693), JiHai Resources (02489), Long Resources (01712), etc

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